Virtu Announces Third Quarter 2023 Results

NEW YORK, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the third quarter ended September 30, 2023.

Third Quarter 2023:

• Net income of $117.6 million; Normalized Adjusted Net Income¹ of $74.7 million
• Basic and diluted earnings per share of $0.63; Normalized Adjusted EPS¹ of $0.45
• Total revenues of $630.2 million; Trading income, net, of $316.1 million; Net income Margin of 18.7%²
  • Adjusted Net Trading Income¹ of $298.0 million
• Adjusted EBITDA¹ of $139.5 million; Adjusted EBITDA Margin¹ of 46.8%
• Share buybacks of $48.8 million, or 2.7 million shares, under the Share Repurchase Program³

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 15, 2023 to shareholders of record as of December 1, 2023.

Note 1: Non-GAAP financial measures. Please see "Non-GAAP Financial Measures and Other Items" for more information.
Note 2: Calculated by dividing Net income by Total revenue
Note 3: Shares repurchased calculated on a settlement date basis.

Financial Results

Third Quarter 2023:

Total revenues increased 12.3% to $630.2 million for this quarter, compared to $561.0 million for the same period in 2022. Trading income, net, decreased to $316.1 million for the quarter compared to $397.4 million for the same period in 2022. Other, net increased to $76.1 million for this quarter compared to ($1.0) million for the same period in 2022. Net income totaled $117.6 million for this quarter, compared to net income of $79.9 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were $0.63, compared to a basic earnings per share of $0.38 and diluted earnings per share of $0.37, for the same period in 2022.

Adjusted Net Trading Income decreased 10.0% to $298.0 million for this quarter, compared to $331.1 million for the same period in 2022. Adjusted EBITDA decreased 22.7% to $139.5 million for this quarter, compared to $180.6 million for the same period in 2022. Each of these metrics excludes Other, net.

Normalized Adjusted Net Income, removing one-time and non-cash items, decreased 30.0% to $74.7 million for this quarter, compared to $106.8 million for the same period in 2022.

Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.45 for this quarter, compared to $0.61 for the same period in 2022.

Operating Segment Information

The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company's capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

Corporate contains the Company's investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2023 and 2022.

Total revenues by segment
(in thousands, unaudited)

	Three Months Ended September 30, 2023												Three Months Ended September 30, 2022
	Market Making			Execution Services			Corporate			Total			Market Making			Execution Services			Corporate				Total
Trading income, net	$	310,523		$	5,562		$	—		$	316,085		$	392,496		$	4,887		$	—			$	397,383
Commissions, net and technology services		6,343			103,933			—			110,276			10,687			110,299			—				120,986
Interest and dividends income		124,803			2,890			—			127,693			43,446			185			—				43,631
Other, net		75,682			68			360			76,110			1,257			4,228			(6,441	)			(956	)
Total Revenues	$	517,351		$	112,453		$	360		$	630,164		$	447,886		$	119,599		$	(6,441	)		$	561,044

	Nine Months Ended September 30, 2023													Nine Months Ended September 30, 2022
	Market Making			Execution Services			Corporate				Total			Market Making			Execution Services			Corporate			Total
Trading income, net	$	1,021,179		$	13,585		$	—			$	1,034,764		$	1,299,117		$	16,501		$	—		$	1,315,618
Commissions, net and technology services		22,677			318,546			—				341,223			30,881			381,100			—			411,981
Interest and dividends income		300,086			7,830			—				307,916			95,221			214			—			95,435
Other, net		77,580			84			(4,171	)			73,493			1,825			4,525			37,660			44,010
Total Revenues	$	1,421,522		$	340,045		$	(4,171	)		$	1,757,396		$	1,427,044		$	402,340		$	37,660		$	1,867,044

Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
(in thousands, unaudited)

	Three Months Ended September 30, 2023															Three Months Ended September 30, 2022
	Market Making				Execution Services				Corporate			Total				Market Making				Execution Services				Corporate			Total
Trading income, net	$	310,523			$	5,562			$	—		$	316,085			$	392,496			$	4,887			$	—		$	397,383
Commissions, net and technology services		6,343				103,933				—			110,276				10,687				110,299				—			120,986
Interest and dividends income		124,803				2,890				—			127,693				43,446				185				—			43,631
Brokerage, exchange, clearance fees and payments for order flow, net		(101,077	)			(22,168	)			—			(123,245	)			(147,346	)			(21,523	)			—			(168,869	)
Interest and dividends expense		(132,523	)			(279	)			—			(132,802	)			(61,019	)			(970	)			—			(61,989	)
Adjusted Net Trading Income	$	208,069			$	89,938			$	—		$	298,007			$	238,264			$	92,878			$	—		$	331,142

	Nine Months Ended September 30, 2023															Nine Months Ended September 30, 2022
	Market Making				Execution Services				Corporate			Total				Market Making				Execution Services				Corporate			Total
Trading income, net	$	1,021,179			$	13,585			$	—		$	1,034,764			$	1,299,117			$	16,501			$	—		$	1,315,618
Commissions, net and technology services		22,677				318,546				—			341,223				30,881				381,100				—			411,981
Interest and dividends income		300,086				7,830				—			307,916				95,221				214				—			95,435
Brokerage, exchange, clearance fees and payments for order flow, net		(323,868	)			(67,370	)			—			(391,238	)			(401,982	)			(74,253	)			—			(476,235	)
Interest and dividends expense		(340,954	)			(1,942	)			—			(342,896	)			(149,401	)			(3,842	)			—			(153,243	)
Adjusted Net Trading Income	$	679,120			$	270,649			$	—		$	949,769			$	873,836			$	319,720			$	—		$	1,193,556

Financial Condition

As of September 30, 2023, Virtu had $726.4 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,805.4 million.

Share Repurchase Program

Since inception of the program in November 2020 through settlement date October 31, 2023, the Company repurchased approximately 42.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,083.7 million. The Company has approximately $136.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Earnings Conference Call Information

Virtu Financial will host a conference call to review its third quarter 2023 financial performance today, November 2nd, at 8:00 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

Website Information

We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures and Other Items

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), we use the following non-GAAP measures of financial performance:

• "Adjusted Net Trading Income", which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
  
• "EBITDA", which measures our operating performance by adjusting Net Income to exclude financing interest expense on our long-term borrowings, debt issue cost related to debt refinancing, prepayment, and commitment fees, depreciation and amortization, amortization of purchased intangibles and acquired capitalized software, and income tax expense, and "Adjusted EBITDA", which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share based compensation and other expenses, which includes reserves for legal matters, and Other net, and “Adjusted EBITDA Margin”, which compares Adjusted EBITDA to Adjusted Net Trading Income.
  
• “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items including gains and losses from strategic investments and the sales of businesses, and other non-cash items, assuming that all vested and unvested non-voting common interest units in Virtu Financial LLC have been exchanged for shares of our Class A common stock, and applying an effective tax rate, which was approximately 24%.
  
• “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.
  

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

• they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
• our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
• they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
• they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
• they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
	Three Months Ended  September 30,								Nine Months Ended  September 30,
(in thousands, except share and per share data)	2023				2022				2023				2022
Revenues:
Trading income, net	$	316,085			$	397,383			$	1,034,764			$	1,315,618
Interest and dividends income		127,693				43,631				307,916				95,435
Commissions, net and technology services		110,276				120,986				341,223				411,981
Other, net		76,110				(956	)			73,493				44,010
Total revenues		630,164				561,044				1,757,396				1,867,044
Operating Expenses:
Brokerage, exchange, clearance fees and payments for order flow, net		123,245				168,869				391,238				476,235
Communication and data processing		57,066				52,907				170,837				164,441
Employee compensation and payroll taxes		97,221				103,254				296,214				305,338
Interest and dividends expense		132,802				61,989				342,896				153,243
Operations and administrative		22,416				14,319				72,204				53,110
Depreciation and amortization		15,815				16,658				47,076				50,470
Amortization of purchased intangibles and acquired capitalized software		15,967				16,060				48,007				48,817
Termination of office leases		364				361				314				1,744
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,796				1,404				5,744				28,525
Transaction advisory fees and expenses		6				134				30				1,113
Financing interest expense on long-term borrowings		25,361				23,483				74,499				66,905
Total operating expenses		492,059				459,438				1,449,059				1,349,941
Income before income taxes and noncontrolling interest		138,105				101,606				308,337				517,103
Provision for income taxes		20,512				21,732				51,117				88,405
Net income	$	117,593			$	79,874			$	257,220			$	428,698
Noncontrolling interest		(55,678	)			(39,867	)			(120,722	)			(191,264	)
Net income available for common stockholders	$	61,915			$	40,007			$	136,498			$	237,434
Earnings per share:
Basic	$	0.63			$	0.38			$	1.36			$	2.17
Diluted	$	0.63			$	0.37			$	1.36			$	2.16
Weighted average common shares outstanding
Basic		93,408,537				102,289,172				95,376,590				105,500,700
Diluted		93,408,537				102,550,852				95,376,590				106,004,393
Comprehensive income:
Net income	$	117,593			$	79,874			$	257,220			$	428,698
Other comprehensive income
Foreign exchange translation adjustment, net of taxes		(4,005	)			(18,527	)			170				(43,505	)
Net change in unrealized cash flow hedges gains, net of taxes		(7,646	)			30,731				(12,612	)			92,666
Comprehensive income	$	105,942			$	92,078			$	244,778			$	477,859
Less: Comprehensive income attributable to noncontrolling interest		(50,832	)			(44,719	)			(115,557	)			(209,051	)
Comprehensive income available for common stockholders	$	55,110			$	47,359			$	129,221			$	268,808

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)
The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.
	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except percentages)	2023				2022				2023				2022
Reconciliation of Trading income, net to Adjusted Net Trading Income
Trading income, net	$	316,085			$	397,383			$	1,034,764			$	1,315,618
Commissions, net and technology services		110,276				120,986				341,223				411,981
Interest and dividends income		127,693				43,631				307,916				95,435
Brokerage, exchange, clearance fees and payments for order flow, net		(123,245	)			(168,869	)			(391,238	)			(476,235	)
Interest and dividends expense		(132,802	)			(61,989	)			(342,896	)			(153,243	)
Adjusted Net Trading Income	$	298,007			$	331,142			$	949,769			$	1,193,556
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income		117,593				79,874				257,220				428,698
Financing interest expense on long-term borrowings		25,361				23,483				74,499				66,905
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,796				1,404				5,744				28,525
Depreciation and amortization		15,815				16,658				47,076				50,470
Amortization of purchased intangibles and acquired capitalized software		15,967				16,060				48,007				48,817
Provision for income taxes		20,512				21,732				51,117				88,405
EBITDA	$	197,044			$	159,211			$	483,663			$	711,820
Severance		1,346				1,250				5,256				4,009
Transaction advisory fees and expenses		6				134				30				1,113
Termination of office leases		364				361				314				1,744
Other		(74,599	)			1,556				(67,396	)			(35,813	)
Share based compensation		15,353				18,133				47,108				50,841
Adjusted EBITDA	$	139,514			$	180,645			$	468,975			$	733,714
Selected Operating Margins
GAAP Net income Margin (1)		18.7	%			14.2	%			14.6	%			23.0	%
Non-GAAP Net income Margin (2)		39.5	%			24.1	%			27.1	%			35.9	%
EBITDA Margin (3)		66.1	%			48.1	%			50.9	%			59.6	%
Adjusted EBITDA Margin (4)		46.8	%			54.6	%			49.4	%			61.5	%
1 Calculated by dividing Net income by Total revenue.
2 Calculated by dividing Net income by Adjusted Net Trading Income.
3 Calculated by dividing EBITDA by Adjusted Net Trading Income.
4 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)
(Continued)
The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.
	Three Months Ended  September 30,							Nine Months Ended  September 30,
(in thousands, except share and per share data)	2023				2022			2023				2022
Reconciliation of Net Income to Normalized Adjusted Net Income
Net income	$	117,593			$	79,874		$	257,220			$	428,698
Provision for income taxes		20,512				21,732			51,117				88,405
Income before income taxes and noncontrolling interest	$	138,105			$	101,606		$	308,337			$	517,103
Amortization of purchased intangibles and acquired capitalized software		15,967				16,060			48,007				48,817
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,796				1,404			5,744				28,525
Severance		1,346				1,250			5,256				4,009
Transaction advisory fees and expenses		6				134			30				1,113
Termination of office leases		364				361			314				1,744
Other		(74,599	)			1,556			(67,396	)			(35,813	)
Share based compensation		15,353				18,133			47,108				50,841
Normalized Adjusted Net Income before income taxes	$	98,338			$	140,504		$	347,400			$	616,339
Normalized provision for income taxes (1)		23,601				33,702			83,374				147,922
Normalized Adjusted Net Income	$	74,737			$	106,802		$	264,026			$	468,417
Weighted Average Adjusted shares outstanding (2)		167,164,049				175,893,027			169,101,067				179,290,742
Normalized Adjusted EPS	$	0.45			$	0.61		$	1.56			$	2.61
(1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
(2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company's Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company's Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company's Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan during the three and nine months ended September 30, 2023 and 2022 and the Amended and Restated ITG 2007 Equity Plan during the three and nine months ended September 30, 2022.

Virtu Financial, Inc. and Subsidiaries
Condensed Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except share data)	September 30, 2023			December 31, 2022
Assets
Cash and cash equivalents	$	688,790		$	981,580
Cash and securities segregated under regulations and other		37,565			56,662
Securities borrowed		1,524,177			1,187,674
Securities purchased under agreements to resell		3,127,072			336,999
Receivables from broker-dealers and clearing organizations		1,696,495			1,115,185
Receivables from customers		148,445			80,830
Trading assets, at fair value		8,287,525			4,630,552
Property, equipment and capitalized software, net		92,124			85,194
Operating lease right-of-use assets		161,811			187,442
Goodwill		1,148,926			1,148,926
Intangibles (net of accumulated amortization)		273,473			321,480
Deferred taxes		132,361			146,801
Other assets		299,664			303,916
Total assets		17,618,428			10,583,241
Liabilities and equity
Liabilities
Short-term borrowings, net		97,217			3,944
Securities loaned		1,459,980			1,060,432
Securities sold under agreements to repurchase		3,376,948			627,549
Payables to broker-dealers and clearing organizations		540,464			273,843
Payables to customers		74,374			46,525
Trading liabilities, at fair value		7,941,472			4,196,974
Tax receivable agreement obligations		215,483			238,758
Accounts payable and accrued expenses and other liabilities		411,848			448,635
Operating lease liabilities		211,249			239,202
Long-term borrowings, net		1,778,743			1,795,952
Total liabilities		16,107,778			8,931,814
Total equity		1,510,650			1,651,427
Total liabilities and equity	$	17,618,428		$	10,583,241
	As of September 30, 2023
Ownership of Virtu Financial LLC Interests:	Interests			%
Virtu Financial, Inc. - Class A Common Stock and Restricted Stock Units		96,468,282			58.4%
Non-controlling Interests (Virtu Financial LLC)		68,699,738			41.6%
Total Virtu Financial LLC Interests		165,168,020			100.0%

About Virtu Financial, Inc.

Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic and governmental and other responses thereto; fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

CONTACT         

Investor & Media Relations
Andrew Smith
investor_relations@virtu.com
media@virtu.com